Member

New member

Hi Folks,
I am still here, trying out all the new ideas. I have reached number16 on the list and determined to get to the end and claim the pot of gold::
Thanks for all the interesting posts on this forum.
Tommy

Member

I might agree on some of the points,but I think aspiring traders must focus more on understanding the market first, before start learning the technicals and finally start to trade. After trading a while, I realize that traders jump right away in battle without the proper mental preparation, that is why all newbie in this business experience capital wipe out before they finally become profitable and others may even quit trading, why? because they lack the important aspect of Forex trading which is mental preparation.

Newbie must condition there mind first before start trading, things like:

The market is always right! Newbies seems to fight the market when they get stopped out.They are psychologically affected thereby dumping all the rules of their trading system. You can't fight the market, if you have a losing trade it only means that you are wrong in your prediction.

Keep on adjusting its stop loss or worst remove it? Why? Because there sub_conscious mind can not admit a losing trade.

To me technical is less important than mental preparation.

Forex trading is 80%(even more) psychological and 20% technical, but the sad truth in this business is that there are only few companies and individual that put more emphasis in mental preparation, everyone is more focus on selling different products that focus only the technical side.

Active member

No matter how much I study and no matter how much research I do, there is still not a perfect trading plan that will generate profits every time I trade.

The goal that every trader wants to attain is to just make sure that the profits exceed the losses in the end.

There are two ways to achieve this goal.

One is to reduce losers and let winners ride so the capital amount that is taken in exceeds the losses.

The other method is to have more winning trades than losers.

I am a firm believer that the markets act randomly. Not every pattern develops as expected, not all support levels hold, and there certainly are plenty of instances of head fakes, false breakouts, and just plain old bad trading days.

You can take many different approaches to trading.

Each individual trader must try to find what works best for him or her. You need to discover whether you can emotionally handle extreme stress from holding large positions overnight or finding a niche in day-trading techniques or simply developing the patience needed for long-term trend trades.

One casual observation is that I have noticed a common denominator among the more successful traders: They exhibit a genuine sense of confidence and are hard-working and well-organized in their thoughts and actions.

Some are a little cocky but, for the most part, the more successful traders are more reserved or quiet individuals. Maybe that comes from the concept of ?walking quietly but carrying a big wallet.?

In this business you need to start with a desire to make money and, of course, the old saying applies, ?It takes money to make money.?

You do need trading risk capital. Again, my definition of risk capital is money you can afford to lose, money that you are not afraid of losing, and money that, if you do lose it, will not make you hold a grudge against the markets.

That statement was made as a reminder that education is expensive, bad trades do happen and that if you lose, then you need to re-evaluate and re-educate, and then understand what went wrong.

A very successful trader once told me that fundamental, technical, or any other analysis ?won?t do me a damn bit of good if I don?t have the money to trade or the courage to pull the trigger.?

You also need confidence, you need to rely on your own trading skills, and you absolutely need to be honest with yourself and admit when you are wrong, then act accordingly.

For those who do experience trading success, take money out of your trading account! Diversify your trading profits.

I have heard many a trader start out with $5,000 or $10,000, make a large sum trading a particular market move, and decide to just build their account.

Quite frankly, I really do not remember any of those people achieving that goal. I have seen traders give most, if not all and more, back to the markets.

One reason is they become overconfident.

They think, ?If I can take $5,000 to $30,000, maybe I can take $30,000 to $1 million!?

Greed sets in, they trade larger positions, take on more risk, and forget what got them their initial profits.

If you are a one-lot or two-lot size trader, then take money out of the market on a consistent basis and reinvest elsewhere. Wealth creation is the goal, and diversification is the key to success in life.

Every individual has a desire to improve his or her life: Wishing, dreaming and goal-setting are all fine traits to have. The biggest obstacles to success are the inner demons or character defects we have as human beings. I am not the first and will certainly not be the last to say this, but understanding human psychology is a vital part of trading.

The importance of gaining control of some of the negative personality traits, which we all have as human beings, cannot be overemphasized if you want to be a successful trader.

These traits, if not overcome quickly in the early stages of trading, can lead to destructive trading habits and eventually the demoralizing agony of defeat.

I really can?t stress enough the importance of human psychology. Based on my own experiences as a trader and on conversations with many top analysts and traders, here is a top-10 list of observations I would like to pass along to you.

You may recognize some of these thoughts as market clich?s, but they have stood the test of time and should be helpful for you as well.

1. You only have three choices when you are in a bad position, and it is not hard to figure out what to do:

(1) Get out, (2) double up, or (3) spread it off. I have always found getting out to be the best of all three choices.

2. No opinion on the market or you are doubtful about market direction? Then stay out. Remember, when in doubt, stay out.#

4. If you snooze, you lose. Know your markets, when they trade, and what reports will affect the market price.

5. The markets will always let you in on the losers; the market?s job is to keep you out of winners. Dump the dogs and ride the winning tide.

6. Stops are not for sissies.

7. Plan your trade, then trade your plan. He who fails to plan, plans to fail.

8. Buy the rumor and sell the fact. Watch for volatility in these situations; it usually marks tops or bottoms in the markets.

9. Buy low, sell high. Or buy it when nobody wants it, and sell it when everybody has to have it!

10. It?s okay to lose your shirt, just don?t lose your pants; that is where your wallet is

One last thought I want to leave with you. It applies not only to everyday life but to trading the markets as well:

Success is measured not so much by the wealth or position you have gained, but rather by the obstacles you have overcome to succeed!

Good luck in all of your investing and trading endeavors. And, remember, you are trading to take money out of the market, not to build a big account to satisfy your ego or to invest in your grand children?s retirement fund.

Be sure to take money out of the market for yourself and immediate needs so you can enjoy the fruits of your labors...